LOGISTICS AND SUPPLY CHAIN - Compare & contrast humanitarian & Essay

LOGISTICS AND SUPPLY CHAIN - Compare & contrast humanitarian & business supply chains. Provide anD analysis of similarities & d - Essay Example Though the supply chain strategies in both the cases aim at efficiency, there are differences arising due to the objectives, nature and goals of the operations, the management structure and management style. Blecken, A. (2010, p. 8) states â€Å"Thomas and Kopezak (2006) see the lack of recognition of importance of supply chain management and logistics in humanitarian organizations as a challenge to efficient and effective logistics and supply chain management†¦Ã¢â‚¬  This observation is in contrast to the recognition of its importance given by the private businesses, though an encouraging trend is evolving in humanitarian supply chain. I Factors differentiating humanitarian and business supply chains Factors differentiating humanitarian and business supply chains are discussed in this section. Though the operational strategy in the case of both humanitarian and business supply chain basically involves procurement, storage, transportation and distribution, similarities and dif ferences relative to these functions in respect of humanitarian and business supply chains are discussed separately under section II for understanding of the operational issues in proper perspective. Stakeholders The primary stakeholders in the humanitarian supply chain are the people affected by earth quakes, floods and other natural calamities; afflicted by epidemics, poverty or other events. Unlike the customers or suppliers of a business organization who comes to do business with the corporations or associate with them as employees, the humanitarian organizations are involved in the rescue or rehabilitation operations of unknown people from different parts of the world in need of assistance and support. These people are not related to other stakeholders like donors, service providers, NGOs or other agencies and the service to humanity is the cornerstone of these humanitarian organizations. Management structure The management structure of humanitarian organizations is not uniform as in the case of private corporations with a defined hierarchy and chain of command. Lack of accountability is a systematic problem in the charitable organizations. However, Tomasini & Wassenhove (2004, p. 446) noted that in the case of humanitarian supply management system (SUMA) developed by Pan American Health Organization (PAHO) in El Salvador a public-private commission was set up, including Price Waterhouse and KPMG Peat Marwick to audit the reception and distribution of goods as well as the management of funds. SUMA has successfully overcome the inherent weakness in the management structure of the humanitarian supply chain. Coordination with the Stakeholders Humanitarian operations are complex with different stakeholders such as government agencies, local authorities, private sector corporations, service providers, goods suppliers, large and small aid agencies and NGOs apart from the communities involved. Adherence to the humanitarian principles in the activities at all lev els and ensuring relief without partiality or discrimination is very important for sustaining the confidence level and trust of the donors and other stakeholders for their continued assistance and support. Infrastructure facilities Problems faced by a typical humanitarian orga